General Accounting In 2021, it cost Oceanic Corp. $11 per unit to produce part B4. In 2022, it hasincreased to $14 per unit. In 2022, Westside Inc. has offered to provide Part B4for $9 per unit to Oceanic. As it pertains to the make-or-buy decision, whichstatement is true?a. Incremental costs are $3 per unit.b. Incremental revenues are $5 per unit.c. Net relevant costs are $3 per unit.d. Differential costs are $5 per unit.

Step 1:The differential cost is the additional cost incurred by the company by making the product…

Answered: In 2021, it cost Oceanic Corp. $11 per…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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During 2019, it cost Sheridan Company $20 per unit to produce part T5. During 2020, it has increased to $25 per unit. In 2020, Southside Company has offered to provide Part T5 for $18 per unit to Sheridan. As it pertains to the make-or-buy decision, which statement is true? O Differential costs are $7 per unit. O Incremental revenues are $5 per unit. O Incremental costs are $2 per unit. O Net relevant costs are $2 per unit.
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The cost to produce Part A was $5 per unit in 2021. During 2022, it has increased to $9 per unit. In 2022, Carla VistaCompany has offered to supply Part A for $6 per unit. For the make-or-buy decision, net relevant costs are $4 per unit. differential costs are $3 per unit. incremental costs are $4 per unit. incremental revenues are $1 per unit.
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